Gain SharingCompensation Management

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Gain Sharing• Gain sharing is a system of

management used by a business to increase profitability by motivating employees to improve their performance through involvement and participation. As their performance improves, employees share financially in the gain (improvement).

Gain Sharing

• Gainsharing’s goal is to

improve performance and

eliminate waste (time,

energy, and materials) by

motivating employees to

work smarter as a team

rather than just working

harder.

Gain Sharing• There are two important

parts of a Gain sharing system. One is a bonus calculation. The second is a structured system for employee involvement. Because of these two parts, Gain sharing is best seen as an "organizational development" tool.

Gain Sharing

• This type of bonus program

is most common in

manufacturing plants and is

designed to reward

productivity and improved

product quality.

Gain Sharing

• Gain sharing works best when

employees become responsible

for production quantity and

quality and are encouraged to

improve the way the product is

made. This program reflects a

philosophy that employees

know their job best.

Gain Sharing

• Gain sharing programs pay

out bonuses for statistical

improvements in production

and quality on a quarterly or

sometimes monthly basis,

providing a sense of

excitement for participants.

Gain Sharing

• These programs are often

very successful, transforming

the manufacturing plant into

a center of employee

commitment.